ECP #2.4 EXPORT LICENSE PROCEDURES FOR TANGIBLE EXPORTS AND COLLABORATING WITH NON-U.S. PERSONS

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1 I. Purpose To ensure that all exports are analyzed for license requirements, and if required, export licenses are obtained from the appropriate government agencies. The purpose of this procedure is to standardize and facilitate the prior review and approval of SI s exports that may be subject to the International Traffic in Arms (ITAR) - or Export Administration Regulations- (EAR) - restricted goods and technology. If items or data are hand carried or checked onboard an aircraft, please also review Policy and Procedure for Traveling with Equipment and Research-related Materials. II. Procedure 1. The ECO informs PIs and PMs about the need to obtain an export license through on-going export compliance review of grants and contracts and advisories sent to advisors semi-annually. (See Attachment 1). The ECO works with PIs and their PM to complete the ITAR/Export Determination Checklist (Attachment 2) with the facts of the transaction or collaboration with a foreign person. (Foreign National Export license form Attachment 3 form ECP 5). 2. Through communication with the PI and PM, the ECO or ECO-backup determines the program and purpose of the export items or technical data to be exported parties and countries involved value and origin of the equipment, if applicable length of time the equipment is staying and if it is coming back, if applicable. For deemed exports (providing export controlled data to a non-u.s. person in U.S.) obtain information about the length of time the foreign person will be working on the program. The validity of a license will correspond to the expiration of their visa. 3. The ECO works with the PI/PM to determine the export classification. The PI consults with the sponsor to inquire if the program is ITAR or EAR controlled. 4. For an equipment export, the PI or requestor provides the details of the transaction on the Export Checklist. Details may be added over time, not all the information is necessarily available at the start of the process. See forms XXX ITAR/Export Determination ECO-1 and Export Checklist. ECO If there is no determination from the sponsor, the PI and ECO review the Statement of Work, equipment, location, etc. and ITAR US Munitions List and EAR Commerce Control List to determine the type of export and the category and/or Export Control Classification Number. The ECO communicates with the PI or PM to identify if the item to be exported meets the parameters of ECO /4/2014 page 1 rev A

2 listed items and if a license is required. The ECO then reviews any license exceptions or exemptions that might apply. The ECO completes the ITAR/EAR license determination. (If the contemplated export is a deemed export, there is an exemption b. 11 we can take advantage of is the on U.S. person is a full time employee.) 6. If no exception/exemption applies, the ECO completes the appropriate export license application form, (ITAR DSP-5 of Technical Assistance Agreement or EAR BIS form 748P, or OFAC form ), for temporary or permanent export. For this, the ECO requires the PI to provide the quantity, description, brochure or technical specifications and value of the shipment. 7. The ECO determines what supporting documents need to be attached to the license application to comply with the government s review of the transaction, such as end-user statement for foreign national license: visa, passport, resume, cover letter describing job description, technical data to be provided, the output of their work, statement of work. A foreign national license form ECP-5 captures the information see sample import certificate for EAR licenses valued at over $50,000 to countries listed in statement of work contract or purchase order sample technical data or drawings. 8. Prior to submission, the draft of the license is sent to the PI and PM for review, comments and their approval. Once approved, the license forms, pdf versions and unsigned forms are placed in the shared drive V:7 Export Controlled Awards. 9. If the license is a Technical Assistance Agreement (TAA) with hardware associated with it, the PI or PM must provide a description and dollar value of the exported hardware, whether it is permanent or temporary (coming back). The ECO provides the prepared license or TAA draft and transmittal letter to all proposed signatories prior to submission to DDTC for their consent or proposed revisions. 10. For ITAR licenses, the ECO validates the license form, and then signs the license digitally before uploading. For EAR licenses, the ECO checks for errors and submits. 11. If the license has provisos from the Dept. of Defense, the ECO reviews the provisos and communicates them to the PI and PM prior to acceptance and license issuance. If a foreign national license for a SI/SAO-affiliated person, the ECO provides the non U.S. person a Non-Disclosure agreement to sign. see Attachment ECO /4/2014 page 2 rev A

3 12. If the technical data is EAR controlled and qualifies for a Technology and Software Under Restriction license, the ECO has the Non-U.S. persons sign the TSR Letter. See Attachment The ECO ensures that the PM and PI receive a written copy of provisos and are informed how to show evidence of complying with them. 14. The ECO works with the PI/PM to determine the export classification. The PI consults with the sponsor to inquire if the program is ITAR or EAR controlled. 15. For an equipment export, the PI or requestor provides the details of the transaction on the Export Checklist. Details may be added over time, not all the information is necessarily available at the start of the process. See forms XXX ITAR/Export Determination ECO-1 and Export Checklist. ECO If there is no determination from the sponsor, the PI and ECO review the Statement of Work, equipment, location, etc. and ITAR US Munitions List and EAR Commerce Control List to determine the type of export and the category and/or Export Control Classification Number. The ECO communicates with the PI or PM to identify if the item to be exported meets the parameters of listed items and if a license is required. The ECO then reviews any license exceptions or exemptions that might apply. The ECO completes the ITAR/EAR license determination. (If the contemplated export is a deemed export, there is an exemption b. 11 we can take advantage of is the on U.S. person is a full time employee.) 17. If no exception/exemption applies, the ECO completes the appropriate export license application form, (ITAR DSP-5 of Technical Assistance Agreement or EAR BIS form 748P, or OFAC form ), for temporary or permanent export. For this, the ECO requires the PI to provide the quantity, description, brochure or technical specifications and value of the shipment. 18. The ECO determines what supporting documents need to be attached to the license application to comply with the government s review of the transaction, such as end-user statement for foreign national license: visa, passport, resume, cover letter describing job description, technical data to be provided, the output of their work, statement of work. A foreign national license form ECP-5 captures the information see sample import certificate for EAR licenses valued at over $50,000 to countries listed in statement of work contract or purchase order sample technical data or drawings. 19. Prior to submission, the draft of the license is sent to the PI and PM for review, comments and their approval. Once approved, the license forms, pdf versions and unsigned forms are placed in the shared drive V:7 Export Controlled Awards. ECO /4/2014 page 3 rev A

4 20. If the license is a Technical Assistance Agreement (TAA) with hardware associated with it, the PI or PM must provide a description and dollar value of the exported hardware, whether it is permanent or temporary (coming back). The ECO provides the prepared license or TAA draft and transmittal letter to all proposed signatories prior to submission to DDTC for their consent or proposed revisions. 21. For ITAR licenses, the ECO validates the license form, and then signs the license digitally before uploading. For EAR licenses, the ECO checks for errors and submits. 22. If the license has provisos from the Dept. of Defense, the ECO reviews the provisos and communicates them to the PI and PM prior to acceptance and license issuance. If a foreign national license for a SI/SAO-affiliated person, the ECO provides the non U.S. person a Non-Disclosure agreement to sign. see Attachment 23. If the technical data is EAR controlled and qualifies for a Technology and Software Under Restriction license, the ECO has the Non-U.S. persons sign the TSR Letter. See Attachment The ECO ensures that the PM and PI receive a written copy of provisos and are informed how to show evidence of complying with them. III. References SD 611 Export Compliance and Trade Sanctions Related to Research, Export and Museum Activities Contact: Natascha Finnerty, Export Compliance Officer about questions related to this procedure at export@si.edu and telephone is (617) Definitions Applicant company or organization that is registered with the Directorate of Defense Trade Controls (DDTC) or Bureau of Industry and Security (BIS) to file license applications through the internet using their secure license portals. Bureau of Industry and Security (BIS) Agency in the Department of Commerce that processes dual use and commercial license applications for export. ECO /4/2014 page 4 rev A

5 Category the section of the US Munitions List where the item to be exported is classified. Category XV is Space-related items, Category XII is infrared and optics. The Commerce Control List has Categories 0 9. Commerce Control List (CCL) A list of items under the export control jurisdiction of the Bureau of Industry and Security, U.S. Department of Commerce. Note that certain additional items described in part 732 of the EAR are also subject to the EAR. The CCL is found in Supplement No. 1 to part 774 of the EAR. D-Trade 2 portal used by the DDTC to file export license applications. End-user information both DDTC and BIS require detailed end-user information about where the item or technology will be used and by whom and for what purpose. Export Administration Regulations (EAR) regulations set forth in 15 CFR Parts over the export of commercial, dual-use, strategic and other items subject to foreign policy controls. Export Control Classification Number (ECCN) 5-digit alphanumeric number assigned to dual-use or commercial items, production and test equipment, materials, software and technology that are controlled for export by an export regime or US government. Electronic Export Information filing made electronically to the Bureau of Census through their Automated Export System to report exports under an export license or license exception/exemption or valued over $2500. Foreign Consignee non U.S. party with whom SAO has direct relationship and/or contractual agreement. International Traffic in Arms Regulations (ITAR) 22 CFR Parts , regulations issued by the Political and Military Affairs office of the US Department of State governing the registration, authorization of transfer and enforcement of these regulations related to items, services and technical data designated as defense articles. Registration Number the number assigned to SI in their registration letter from the Directorate of Defense Trade Controls (DDTC), US Department of State. It is a government agency so it starts with a G and needs to be listed on the license. Schedule B Number US-only number (10 digits XXXX.XX.XXXX format) that identifies the item for the purposes of calculating our balance of trade. Only used for exports. Significant Military Equipment (SME) certain defense articles preceded by an asterisk in the US Munitions List. Technical data directly related to the manufacture or production of any defense articles enumerated in any category that are designated as SME shall itself be designated SME. SNAP-R portal used by the BIS to file export license applications. Technical Assistance Agreement (TAA) export license issued by the US State Department to authorize discussions and technology transfers of item on the US Munitions List that are on-going to approved partners. ECO /4/2014 page 5 rev A

6 US Munitions List (US ML) Part 121 of the ITAR that consist of items, services and related technical data that are designated defense articles and defense services pursuant to 38 and 47(7) of the Arms Export Control Act (22 U.S.C 2778 and 2794(7)). SAO s Company ID number with the Dept. of Commerce is S The registration number with DDTC is G NOTE 1: Guidelines for applying for licenses are on DDTC website and are detailed in Part 123 and 124 of the ITAR: DDTC licenses must be signed by an empowered official with a digital certificate and submitted by an approved submitter on the D-Trade license portal. NOTE 2: EAR license preparation procedures are described in Part 748 of the EAR and the license is submitted through the Bureau of Industry and Security license portal called SNAP-R. A user manual for SNAPR is posted on the SNAPR site. Submitters must have an approved SNAPR-R ID but no digital signature is required Responsibilities Export Compliance Officer (ECO) makes a license determination, interviews the PI, applies for the license and manages the release/export of data or items. Principal Investigators (PI) provide the Statement of Work, assistance the classification of the program, and the details of the data/items that non US persons will receive and what they will be using it for Program Managers (PM) facilitate the process where necessary Records The following are considered export compliance records to maintain for five years: s or other communications about the proposed export License applications sent to the appropriate government agencies with supporting documents Approved licenses with provisos ECO /4/2014 page 6 rev A

7 ATTACHMENT 1: LETTER TO ADVISORS [Date] LETTER TO ADVISORS AND POTENTIAL ADVISORS TO PRE DOCS AND POST DOCS As a research organization, Smithsonian Astrophysical Observatory (SAO) is required by federal law to safeguard and/or obtain approval for the transfer of hardware, software and technical data to non-us persons for research projects that are outside of the fundamental research or public domain parameters. I am the Export Compliance Officer, and I am working with a team to identify projects that subject SAO to export controls per the regulations below. Once identified as export controlled, we need to know if the project has foreign-national or export restrictions. As you are an advisor of a non-us person who is not a full-time employee, we need you to ensure that he/she is not working on any program that is export controlled without prior authorization via an export license. Students, fellows and interns who only work with observation data are exempt from export controls as their work is fundamental research. The types of programs that are controlled at SAO are those dealing with technical data and hardware related to certain space or ground-based instrumentation mounted on or used in spacecraft, satellites, and data or software related to their propulsion and control systems. Additionally, research related to focal plane arrays, infrared detectors, deformable mirrors, space-qualified adaptive optics, radiation hardened electronics, digital signal processors, and atomic clocks, etc. is controlled. If you believe your student/fellow/intern has access to or will need access to the above instruments or technology in the future, please contact me as soon as possible. Persons from certain countries are not eligible to have access to certain technology, and SAO would be held liable for a violation. Technology-based export controls start with a determination of whether the item or technology is listed on one of the two export control lists. The two lists are part of the export regulations listed below: International Traffic In Arms Regulations (ITAR) (22 CFR Parts ) (link to BITAR) are administered by the US Dept. of State, Directorate of Defense Trade Controls (DDTC). These regulations control items and related data deemed to provide a military advantage. They are enumerated on the US Munitions List, which includes spacecraft and infrared technologies; research satellites, space vehicles, space qualified optics, thruster technology, ground stations, encryption for military use and guidance systems, among other specially designated defense items. We must interface with DDTC when obtaining approval for technology transfers to non-us persons. ECO /4/2014 page 7 rev A

8 Export Administration Regulations (EAR) (15 CFR Parts ) regulate all other commercial items that are exported, including some items that may require a license from the US Department of Commerce, Bureau of Industry and Security (BIS). Items that may need a license are listed on the Commerce Control List (Part 774 of the EAR) and include such items as lower-level IR cameras, X-ray optics, radiation-hardened electronic components, some cryro-cooled optics and lasers, super computers, coatings, propulsion, encryption and all technology related to these items. These items are subject to safeguard requirements, such as restricted access to files and information by non-us persons (those who are here on a student or work visa), when they are in our possession, in either hard copy or electronic form, and restrictions from lab areas where research is being performed. We would like to arrange a meeting to further explain the export regulations process and discuss your project. During the meeting or at a follow-up meeting, we can evaluate your research and lab equipment against the US Munitions List and the Commerce Control List. If your research has any of these technologies, then we will need to inquire about how you safeguard the items, instrumentation, and files and identify the persons working with you. We also need to determine if there are any limitations to the detail of what can be broadly discussed and published. To prepare for this meeting, we are attaching a compilation of entries on the Commerce Control List and US Munitions List for you to review in advance that may pertain to your research. After the meeting, we may determine other areas of the lists that need to be researched. If you have any questions, contact our Export Compliance Officer, Natascha Finnerty at export@cfa.harvard.edu or her phone at ECO /4/2014 page 8 rev A

9 ATTACHMENT 2 DETERMINATION OF EXPORT CONTROL APPLICABILITY DATE: Completed by: NAME OF CONTRACT/PROPOSAL DESCRIPTION CONTRACT NUMBER DESIGNATED CODE PROJECT PI MANAGER/PRINCIPAL INVESTIGATOR WITH AND PHONE Technical Data (TD) Assessment RESPOND TO QUESTIONS BELOW 1 Does the contract restrict publication or presentation of results? 2 Will information disclosure require NDA? 3 Is there controlled encryption software and hardware bundled with encryption? (over 64 bits not for password protection or authentication) 4 Are there export license clauses or information security provisions? 5 Are foreign sponsors/collaborators involved? 6 Is it for NASA and they have foreign national restrictions? 7 Does the project include controlled equipment under the ITAR or EAR, like IR cameras, telemetry technology, rad hardened components, IR detectors, rockets, vacuum chambers, optical bench, lasers, solar cells, UAVs or missile technology? 8 Does research involve foreign travel? (Ensure it is not to an embargoed country? China, Cuba, Iran, North Korea, Sudan, Syria?) ECO If ITAR, and a deemed export, does higher learning exemption apply to the partner with the foreign national? ECO Assessment of Fundamental Research Signature Does multi country ITAR NASA exemption apply? If controlled, provide the following: SAO personnel who will have access to export controlled information Name 1. YES, Qualifies as Fundamental Research ECO /4/2014 page 9 rev A PM Y OR N NO, It does not qualify ITAR or EAR (circle) DATE OF TRAINING

10 Other US persons who will have access name, title, institute Foreign parties with approved access Name (in US) or organization (not in US) Sub licensees organization (not in US) SCREENING OF ALL PARTIES AGAINST DPL AND SDN DPL report on file? HARDWARE EXPORTS AND DESCRIPTION (Temporary or permanent, controlled under ITAR or EAR.) If yes, complete hardware questionnaire Proposed date TECHNOLOGY AND HW RELEASE ROAD MAP SIGNED NDA S AND TRAINING MARKING OF DOCUMENTS AND RECORDS OF MEETINGS AND TELECONS IT security plan Marking convention Responsible for records of meetings and telecons (participants) Sign off: ECO ECO /4/2014 page 10 rev A

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12 ATTACHMENT 3 SAO FOREIGN NATIONAL INFORMATION FORM FOR EXPORT LICENSE If your research is export controlled and you wish to work with a non-u.s. Person who is not a full time employee, then this is a deemed export. If your program is export-controlled or if your equipment that they will be using is export controlled, then we will need to obtain an export license. Please assist by providing the information below. SUBMITTED BY: PROGRAM: CONTRACT NO/DESIGNATED CODE SPONSOR AND PRIME: TECHNICAL CONTACT NAME: CONTACT INFO: Information needed for license Name Address in US Gonzalo xxx 14 Main Street, Somerville, MA Address in home country Calle Quixote Madrid Spain Nationality Passport Date Checked that it is valid VISA Date Checked that it is valid Resume Cover Letter Spaniard Attached PI name Explain your program, what the person will be working on, what technology they need to have access to in order to perform their job, in what form the technology will be attach ECO /4/2014 page 12 rev A

13 Sample Data Input Sample Data Output Job Description Scientific paper about a different satellite Ozone monitoring instrument To be provided by PI Org Chart where FN is located in Unit Optical and Infrared Astronomy (OIR) Technology Control Plan Completed, reviewed DSP5 or form BIS 748P Proper Statement in item 20 of DSP-5 For Employment in the United States of a foreign national who will Information about ties to US relatives, any real estate owned ECP-5 ECO ECO ECO No family in US ECO /4/2014 page 13 rev A

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25 ATTACHMENT 5 Non-Disclosure Agreement Access to ITAR-Controlled Defense Articles by Foreign National Employees in the United States I, [name of foreign person], acknowledge and understand that any technical data related to a defense article covered by the U.S. Munitions List to which I have access per authorization by the U.S. Department, Directorate of Defense Trade Controls [state relevant export license/authorization number] and disclosed to me in my employment by [name of U.S. company] is subject to the export controls of the International Traffic in Arms Regulations (ITAR) (Title 22, Code of Federal Regulations, Parts ). I also acknowledge and understand that should I inadvertently receive defense articles for which I have not been granted access authorization by the U.S. Department of State, Directorate of Defense Trade Controls, I will report such unauthorized receipt and acknowledge the transfer to be a violation of U.S. Government regulations. In furtherance of the above, I hereby certify that all defense articles, including related technical data, to which I have access will not be used for any purpose other than that authorized by the U.S. Department of State, Directorate of Defense Trade Controls and will not be further exported, transferred, disclosed via any means (e.g., oral disclosure, visual access, facsimile message, telephone) whether in its original form, modified, or incorporated in any other form, to any other foreign person or any foreign country without the prior written approval of the U.S. Department of State, Directorate of Defense Trade Controls. Signature Date ECO /4/2014 page 25 rev A

26 ATTACHMENT 6 Non-Disclosure Agreement Letter of Assurance for Non-US SAO-Affiliated Person * To Permit Access to EAR-Controlled Technology and Software Under Restriction (TSR) or for Specific International Traffic in Arms Regulations Export License I, [name of non-us person], acknowledge and understand that certain research or technical data related to a controlled technology or software per the Commerce Control List of the Export Administration Regulations (15 CFR Parts ) to which I may have access and or is disclosed to me in my affiliation with Smithsonian Astrophysical Observatory is subject to export controls and is permitted by license exception TSR Technology and Software Under Restriction. The controlled research technology, data or software may not be disclosed to others without permission by my advisor/supervisor. Such data or software will be marked export controlled TSR. These controls are related primarily to CCDs, adaptive optics, deformable mirrors, high speed processors, rad hardened electronics, infrared technology, instrumentation or encryption controlled by the U.S. Department Commerce, Bureau of Industry and Security. I also acknowledge and understand that should I inadvertently receive controlled data or software for which I have not been granted access authorization by the U.S. Department Commerce, Bureau of Industry and Security, I will report such unauthorized receipt and acknowledge the transfer to be a violation of U.S. Government regulations. (Similar items and technology as above that are space qualified may controlled as a defense article by the U.S. Department of State, Directorate of Defense Trade Controls requires a specific export license and to obtain such a license, I will be requested to provide information, such as a passport and CV prior to any data release). In furtherance of the above, I hereby certify that all controlled articles, including related technical data, to which I have access will not be used for any purpose other than that authorized by the provisions of the export license exception TSR (part of the EAR) and will not be further exported, transferred, disclosed via any means (e.g., oral disclosure, visual access, facsimile message, telephone) whether in its original form, modified, or incorporated in any other form, to any other non-u.s. person or any foreign country without the prior written approval of the appropriate export license agency as indicated above. Signature Date ECO /4/2014 page 26 rev A

27 * SAO-Affiliated Persons are any of the following: Contractors who perform work similar to Smithsonian employees, such as temporary help firms employees, volunteers, interns and fellows, visiting researchers, including scientists, scholars, students, and research associates. ECO /4/2014 page 27 rev A

28 SAMPLE ITAR LICENSE FOR NON-U.S. PERSON SAMPLE ITAR FOREIGN NATIONAL LICENSE APPROVAL WITH PROVISOS SAMPLE BIS LICENSE ECO /4/2014 page 28 rev A